The impetus for this has been provided by the EU lawmakers with their integration efforts, which also extend into the area of payment traffic. In tandem with these intentions, the objective of the EPC is to create a euro payments area in which cross-border payment traffic is handled as efficiently as the domestic payment traffic within the individual countries. Towards this end, the EPC has elaborated three relevant rulebooks: the SEPA Credit Transfer Scheme Rulebook (SCT) for credit transfers, the SEPA Direct Debit Scheme Rulebook (SDD) for direct debits and the SEPA Cards Framework (SCF) for the use of cards.
The EPC is basing the introduction of SEPA on the EU payments services guidelines, the PSD (Payment Services Directive), which provides a legal foundation for the creation of an EU-wide single market for payments.
Switzerland as part of SEPA
The EPC made a major political decision by accepting Switzerland among the ranks of SEPA members in 2006. For the Swiss financial center, it was already evident at that time that participation by the Swiss banking community was both commercially desirable and economically sensible. Participation in the SEPA schemes is voluntary for the time being – both for financial institutions in the EU zone, as well as for banks in Switzerland and Liechtenstein.
Participation requirements
Since January 2008, credit transfers, and since November 2009, direct debits are made in accordance with the standardized SEPA schemes compulsory for all participating countries. Thus, the participating Swiss financial institutions have to respect the level playing-field in the euro payments area for their euro payment processing. Beyond that, while they are bound to the EPC rulebooks, they are not subject to EU regulations and directives. This includes, for example, both the regulation on charges of 2001 and the PSD, neither of which is applicable for Swiss financial institutions.
Each financial institution that wishes to participate in the SEPA schemes is required to sign an adherence agreement, thus committing to the EPC that it will follow the SEPA regulations unconditionally. Furthermore, the EPC requires a legal opinion of each participant that confirms that the institution can indeed meet the requirements of the SEPA schemes.
In assignment by the Swiss financial center, SIX Interbank Clearing as the National Adherence Support Organisation (NASO) of Switzerland is supporting the Swiss financial institutions with the administrative issues and facilitating the registration process.
Further information
SEPA timeline
Directive 2007/64/EC of 13 November 2007 on payment services in the internal market (Payment Services Directive)
Regulation (EC) No 924/2009 of 16 September 2009 on cross-border payments in euro
Regulation (EC) No 1781/2006 of 15 November 2006 on information on the payer accompanying transfers of funds
European Payments Council (EPC) Website
